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ContractCosting.php Problem
07-02-2013, 07:41 PM
Post: #1
ContractCosting.php Problem
Hi,

Why is the unit price of stock items on the Original Costing always changing with the standard costs of the item. The costing keeps changing irrespective of the type of costing used, whether it's standard or weighted?

Also in Contracts.php, the Profit % is wrong.

A quick fix would be appreciated. Thanks

Kind Regards.
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07-03-2013, 08:43 AM
Post: #2
RE: ContractCosting.php Problem
It is because the contract budget is set in terms of how many units of each component is required for it... as the cost of each component is updated over time then the contract cost changes accordingly - this is a limitation of the system. I guess the design should have taken the costs at the time the contract was set up ... but it doesn't sorry.
I will have to look into the Profit % - a screen shot or some explanation of the problem would be appreciated if possible?

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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07-03-2013, 05:30 PM (This post was last modified: 07-03-2013 05:54 PM by turpsy.)
Post: #3
RE: ContractCosting.php Problem
(07-03-2013 08:43 AM)phil Wrote:  .....- this is a limitation of the system. I guess the design should have taken the costs at the time the contract was set up ... but it doesn't sorry.
I will have to look into the Profit % - a screen shot or some explanation of the problem would be appreciated if possible?

Hi Phil,
1. Thanks for your response but really i don't think that's a limitation, it's a big flaw! It is really unrealistic cos that means the design assumes cost of items never changes which inevitably makes the use of a budget (which is to compare costs at budget time to actual costs at implementation) completely useless!

I really do think this aspect needs a total overhaul. I don't say this to rubbish your effort cos you have been such a great man with your work and all of us here are glad for everything you do, i am particularly appreciative but I just felt I needed to use such strong words above to show how serious that flaw is considering the words you used in describing it in your quote above. That really is a big design flaw for project management purposes!!


2. For the profit % problem, here is what i mean, say our total cost of contract is 10 and profit margin % is 30%. We all expect the contract price to be 13 but weberp says it's 14.28! This is because weberp calculated it like this (10/70%)



To make use of the Contract module in weberp as it is now pending the changes. You may have to do the following;

1. Rethink your budgeting process as it relates to cost of items such that you may decide to keep to reasonable price regimes for a particular period of time relative to the number of projects /contracts you have at hand. This particular price regime could be called your Budget Price List.

2. In view of the above, you can create seperate items for each of your items but designate them as budget items on the system. i.e. you would have both regular items and budgeted items on the system. These budget items must have the same stock category as the regular items on the system.

E.g. Say we already have 'bags' with code B001 and stock category "bags" as an item on the system, create another item 'bags' with the same stock category "bags" but probably with BB001 as item code with the first 'B' showing that this item on the system is a budget item only.

By a budget item, i mean this item would only be used in entering budgeted costs ONLY while the corresponding "regular" item would be used to post work orders to the contract and for other postings for the item. This way the constant changes to the item costs as cost of regular items on the system changes won't affect the budgeted costs and since the same cost centre (stock category) is maintained for both budgeted and regular item, the effect on ledger should balance out accordingly.

In addition to the above, please note that regular items are the items that must be ordered, received and issued to work orders on the system, budgeted items should only be used budget costs only.

Any other effects of this on the general ledger can be cleared via journal entries if applicable in your situation.
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